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Pantheon view following the MPC meeting

BOE

Looking for QE in Dec rather than Nov

  • Pantheon continues to expect GBP50bln of QE in Q4 and another GBP50bln in Q1. However, it now sees December as more likely than November for the announcement: "It is touch and go, however, whether enough soft data will have emerged by its November meeting for it to authorise more QE then; an extension decision in December now looks like a firmer bet."
  • Pantheon notes that "negative policy rates still aren't a near-term prospect…Provided a no-deal Brexit is averted, however, we think that the MPC will stick exclusively to QE."

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